TaxTMI 
TaxTMI 
TaxTMI 
2015 (5) TMI 673
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....eals) has erred in confirming the addition of Rs. 39,62,500 being the addition made by the Assessing Officer by disallowing expenditure under section 40A(3) of the Income-tax Act, 1961. 2. That addition/disallowance of expenditure under section 40A(3) has been confirmed by the worthy Commissioner of Income-tax (Appeals) by not considering our submissions made during the course of hearing properly and the disallowance was not justified since it is covered in clause (j) of rule 6DD. 3. That the worthy Commissioner of Income-tax (Appeals) has also erred in confirming the addition of Rs. 4,79,230 made by the Assessing Officer by disallowing propo....
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....er Singh s/o Sh Kulwant Singh resident of village Bullepur Tehsil Khanna Distt. Ludhiana vide agreement dated December 16, 2009 for which title deed registered on dated March 30, 2010 (photocopy of the agreement dated December 16, 2009 is attached herewith) My client paid Rs. 2,00,000 (Rs. two lakhs only) in cash to the sellers on dated December 16, 2009. Through his agent Sh. Inderjit Singh resident of Khanna, Rs. 37,50,000 (rupees thirty seven lakhs fifty thousand only) in cash on agreed date i.e., March 28, 2010 as per agreement dated December 16, 2009 and Rs. 12,500 (Rs. Twelve thousand five hundred only) on dated March 29, 2010. As regards disallowance of amount under section 40A(3) on account of cash purchase of land is not applied ....
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....nna Distt. Ludhiana. (copy of account of sellers in the books of firm are attached herewith). My client approached the sellers to extend the date registration of title deed because on determined date there was a Sunday but both the seller insist my client to make the balance payment on determined dated i.e., March 28, 2010. Otherwise they will not register the title deeds in favours of my client and forfeit the earnest money. Keeping in view the business expediency, unavoidable circumstances and payment by draft were not practicable on March 28, 2010 my assessee forced to make the payment in cash on determent date i.e., March 28, 2010, which was a Sunday (bank holiday). (affidavits from sellers are attached herewith). Since the payment ma....
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....required to make payment before this date. Later on, it was realised that February 28, 2010 was Sunday and in order to honour the agreement so that the assessee is able to execute the sale deed, the payment was made on March 28, 2010 which was admittedly Sunday. He further submitted that same is covered by the exception in rule 6DD(j). He also referred to page 8 of the paper book which shows that cash was arranged between March 24, 2010 to March 28, 2010 and payment has been made on March 28, 2010 and therefore, the same is covered by the exception. 7. On the other hand the learned Departmental representative strongly supported the order of the Commissioner of Income-tax (Appeals) and submitted that the assessee had plenty of time before M....
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....was noticed that the assessee has given certain advances out of which a sum of Rs. 88,50,000 was paid to M/s. P. P. Constructions which was a sister concern. No interest was charged on this loan. In response to the query why proportionate interest should not be disallowed, it was submitted as under : "As regards no interest charged on advance given to sister concern M/s. PPR Constructions in this respect, I want to state that amount advance to sister concern out of unsecured loans/maintenance deposit and from partner's capital. No interest paid on unsecured loans. During the financial year 2009-10 my client debited profit and loss account w....
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....4 19-6-2009 8,00,000 Dr 58,00,000 6 11,441 25-6-2009 2,00,000 Dr 60,00,000 18 35,507 13-7-2009 10,00,000 Dr 70,00,000 20 46,027 2-8-2009 10,00,000 Dr 80,00,000 33 86,795 4-9-2009 12,00,000 Dr 92,00,000 55 1,66,356 29-10-2009 6,00,000 Dr 98,00,000 5 16,110 3-11-2009 2,00,000 Dr 1,00,00,000 63 2,07,123 5-1-2010 10,00,000 Dr 1,10,00,000 2 7233 7-1-2010 2,50,000 Dr 1,12,50,000 54 1,99,726 2-3-2010 10,00,000....